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What is the standard deviation of returns for Stocks D and E? What is the covariance of returns between stocks D and E? What is

What is the standard deviation of returns for Stocks D and E?

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What is the covariance of returns between stocks D and E?

What is their correlation coefficient?

What diversification benefits would be derived from holding these two stocks in a portfolio?

What is the standard deviation of returns for Stocks D and E? Probability Stock D Return Stock E Return State of the Economy Expansion Normal 20% 40% 60 20 26% 18 10 18 -4 Recession Rp = 18% Rg = 18% Op = 5.06% og = 13.91%

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